Financial Institution Letter Federal Deposit Insurance Corporation Street NW Washington by iamdmx


									                                                                  Financial Institution Letter
Federal Deposit Insurance Corporation                                             December 21, 2005
550 17th Street NW, Washington, D.C. 20429-9990

Guidance on Filing Notices of Proposed Class Action Settlements

Summary: The FDIC is providing guidance on new requirements for filing notices of proposed
class action settlements involving financial institutions for which the FDIC is the primary federal
Distribution:                                  Highlights:
FDIC-Supervised Banks (Commercial and Savings)     • Section 1715 of Title 28 of the United States
                                                       Code specifies new requirements for
Suggested Routing:                                     notifying appropriate state and federal
Chief Executive Officer
Compliance Officer                                     officials of proposed class action settlements.
Legal Counsel
                                                        •   The new notification requirements apply to
Related Topics:                                             depository institutions, depository institution
None                                                        holding companies, foreign banks, and
                                                            nondepository institution subsidiaries of one
                                                            of these entities that are defendants in
Attachment:                                                 proposed class action settlements.

                                                        •   The financial institution must notify its
Contacts:                                                   primary federal regulator if some or all of the
Regional Director of the FDIC Regional Office               matters alleged in the class action are
responsible for supervision of the involved financial
                                                            subject to regulation or supervision by that

                                                        •   State-chartered depository institutions must
                                                            also notify the state bank supervisor of the
Note:                                                       state in which the defendant is incorporated
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
                                                            or chartered if some or all of the matters           alleged in the class action are subject to
                                                            regulation or supervision by the state
To receive FILs electronically, please visit                supervisor.

Paper copies of FDIC financial institution letters      •   FDIC-supervised institutions must file a
may be obtained through the FDIC's Public                   notice of proposed class action settlement
Information Center, 801 17th Street, NW, Room               with the FDIC within 10 days of it being filed
100, Washington, DC 20434 (1-877-275-3342 or                in court. At a minimum, the notice should
                                                            contain a description of the lawsuit, the
                                                            proposed settlement, and a point of contact
                                                            (e.g., bank counsel) should additional
                                                            information be required.

                                                        •   Notices must be sent to the Regional Director
                                                            of the FDIC’s Regional Office responsible for
                                                            supervision of the involved financial

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